Energy Insider: Silicon Wafer Maker’s Output Hurt by Earthquakes; Government Grills Core Industries on Price Jumps; Guanghui Energy Plans Carbon Capture Project in Xinjiang
In today’s Caixin energy news wrap: A silicon wafer maker’s May production will fall 10% because of recent earthquakes in Yunnan and Qinghai; regulators summon key enterprises in the iron ore, steel, copper, aluminum and other industries to discuss price increases; former Sinopec vice president under investigation.
Longi’s May wafer production reduced by earthquakes
Longi Green Energy Technology Co. Ltd. (601012.SH) said recent earthquakes in Yunnan and Qinghai provinces will reduce its production and operations this month. The company estimated that silicon wafer output in May will fall by 10%. No casualties have been reported. Longi said it expects to resume full production in one week.
Government authorities grill key enterprises on bulk price increases
Five government authorities — the National Development and Reform Commission, the Ministry of Industry and Information Technology, the State-owned Assets Supervision and Administration Commission, the State Administration for Market Regulation and the China Securities Regulatory Commission — summoned key enterprises in the iron ore, steel, copper, aluminum and other industries Sunday for a discussion of price increases, the official Xinhua News Agency reported. The meeting found that increases in commodity prices result from multiple factors disturbing normal production and marketing cycles, including import factors and speculation.
Steel supply and demand in balance, China Iron and Steel Association says
Steel prices rose sharply after the May Day holiday because of the combined influence of rising commodity prices, loose global liquidity, rising market expectations and other factors, the China Iron and Steel Association said Monday in an analysis. As demand later eased and national oversight intensified, steel prices are expected to gradually stabilize after adjustments, the association said. In the domestic market, the general situation and trend of steel product supply and demand have not changed, and there is no basis to suggest a substantial ongoing rise in steel prices, the group found.
Former Sinopec vice president under investigation
Zhang Haichao, former vice president of China Petrochemical Corp. (Sinopec), is suspected of serious violations of discipline and law, the Communist Party’s Central Commission for Discipline Inspection said Monday. He is under disciplinary review by the graft buster’s Discipline Inspection and Supervision Group and the National Supervisory Commission of the State-owned Assets Supervision and Administration Commission. Zhang worked in the petroleum system for 37 years, retiring in May 2017. He started his career in oil sales and held several key sales positions at Sinopec. He is Sinopec’s fourth executive to come under investigation.
Portion of Zangge Holdings shares subject to judicial sale
A portion of Zangge Holdings (000408.SZ) shares held by entities acting in concert — Sichuan Yonghong Industrial Co. Ltd. — will be subject to judicial sale, the company said Monday. If the auction is completed, shares held by Yonghong Industrial will be reduced to 376 million shares from 387 million, and its total holding of the company’s shares will be reduced to 18.84%. The auction will cause a change in the company’s control rights for the time being.
Li Keqiang emphasizes strategy for bulk commodity transport
Premier Li Keqiang during an inspection tour in Zhejiang Monday said the eastern China province should develop itself not only as a distribution center for small commodities but also as a strategic transit base for bulk commodities. At a State Council executive meeting a few days ago, work arrangements were made to secure the supply of bulk commodities, curb improper rises in prices and prevent rising prices from negatively affecting consumer prices. Li visited the Ningbo Zhoushan Port Co. Ltd., which has recorded the world’s largest annual cargo throughput for 12 years, making it the largest base for iron ore transit and crude oil transfer in China.
CRSC wins bids on nine major projects totaling $392.9 million
China Railway Signal & Communication Co. Ltd. (688009.SH) won the bidding on nine important projects — three in the railway market and six in the rail transit market, the company said Monday. The total price of the bids comes to 2.5 billion yuan ($392.9 million), accounting for 6.3% of the company’s 2020 audited operating income.
Guanghui Energy plans $77.8 million carbon capture project in Xinjiang
Guanghui Energy Co. Ltd. (600256.SH) secured capital to set up Xinjiang Guanghui Carbon Technology Comprehensive Utilization Co. Ltd. in Yiwu county of Hami, Xinjiang Uygur autonomous region, the company said Monday. The operation will invest in and construct a carbon capture, utilization and storage, and carbon-dioxide flooding project. This will not only empower Xinjiang’s coal and coal chemical production enterprises to effectively take emission reduction measures; it will also improve Xinjiang’s overall oil field recovery rate by 10%–30%, the company said. The total investment in the demonstration project involving 1 million tons of carbon dioxide should not exceed 500 million yuan ($77.8 million), the company said.
Contact editor Bob Simison (firstname.lastname@example.org)
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